The Colombian cannabis market is aiming to become more competitive

Since the legalization of cannabis for medical and scientific purposes in Colombia in 2017, the market has been growing at a rapid pace. Still, many believe that the Colombian market needs to become more competitive in order to solidify its position as one of the biggest in the continent. One of the first steps taken was the modernization of the cannabis licensing process, which is already in place.

3 years have passed since the issuance of Decree 613 of 2017, which regulated the use of cannabis for medical and scientific purposes in Colombia. This norm established the rules, conditions and obligations applicable to the natural or legal persons, of a public or private nature, of Colombian or foreign nationality and domiciled in the country, who carry out any activities related to cannabis.

Since the issuance of Decree 613, there has been a notable interest in the investment in projects or businesses associated with the medicinal and scientific use of cannabis in Colombia. So much so that, to date, and according to official figures, authorities have granted more than 656 licenses for the use of seeds for sowing (98), the cultivation of cannabis plants – psychoactive (164) and non-psychoactive (394) – and more than 171 licenses for the manufacture of cannabis derivatives.

Likewise, there have been around 4191 registrations of small and medium growers, producers and national marketers of medicinal cannabis. These figures only demonstrate the importance of this business and the opportunity it represents for the country.

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Colombia’s cannabis market needs to become more competitive

It is worth mentioning that the decree has been the subject of strong criticism and questioning by different business players, who have expressed the need to reform it in order to include provisions that make this market a more competitive one. 

In this sense, some consider important, for example, a reduction and streamlining of the times required for obtaining licenses and registrations, as well as an increase in the quotas set for the country, and/or a more flexible export regime.

The decree aims to establish adequate control and monitoring of regulated activities. However, in certain cases, the regulations may be excessive and even generate delays or unnecessary or additional costs to licensees, a situation that could discourage national or foreign investment in this type of project. 

The modernization of the cannabis licensing process is already underway

It is worth noting that on June 1, 2020, the Ministry of Justice and Law, in compliance with Decree 613, launched a technological platform called the Information Mechanism for Cannabis Control (MICC). This tool will be applicable to activities and/or licenses for the use of seeds for sowing, as well as for the cultivation of both psychoactive and non-psychoactive cannabis plants.

The platform will allow, among other things, interested parties to virtually process their licenses. It will allow competent authorities to keep a detailed and updated control of the information and/or activities subject to monitoring and control. In addition, licensees will also register their information in a safe and flexible manner, allowing them to obtain licenses, modifications or registrations of existing licenses. For this, they must take into account the different guides and formats established by authorities.

It should be noted that according to two circulars of the Ministry of Justice, also from June of this year, the information of the licensees or holders that was available on physical media as of April 30, 2020, will be migrated directly to the platform. 

On the other hand, once the transition period is over, the license information must be registered directly with the MICC, since this will be the only authorized means for the registration of information and filing of procedures.

The new process comes into operation at the best time possible

It is to be applauded that the platform comes into operation at a time when remote work has become the new reality. It’s expected that it will be an expeditious mechanism that serves both users and the competent authorities, so the use of cannabis for scientific and medicinal purposes will be strengthened in the coming years. 

The new MICC platform will hopefully eliminate the obstacles that have been presented in relation to the procedures and the evaluation of information by the competent authorities.

However, considering the economic situation, it is necessary to expedite the modification of the decree in order to answer the concerns raised by the industry. This modification could be seen as an opportunity to generate new employment and income opportunities for the country.

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(Featured image by Rex Medlen via Pixabay)

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First published in Portafolio, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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